Bill Text: FL S1462 | 2013 | Regular Session | Introduced
Bill Title: Homeowners' Construction Recovery Fund
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2013-05-03 - Died in Regulated Industries, companion bill(s) passed, see CS/CS/HB 57 (Ch. 2013-187) [S1462 Detail]
Download: Florida-2013-S1462-Introduced.html
Florida Senate - 2013 SB 1462
By Senator Dean
5-01415-13 20131462__
1 A bill to be entitled
2 An act relating to the Homeowners’ Construction
3 Recovery Fund; amending s. 489.140, F.S.; revising the
4 surcharge funding calculation; amending s. 489.1401,
5 F.S.; requiring Division II contractors to participate
6 in the fund; amending s. 489.1402, F.S.; revising
7 definitions and removing obsolete definitions;
8 amending s. 489.141, F.S.; revising the eligibility
9 conditions for recovery; amending s. 489.1425, F.S.;
10 revising the notice to residential property owners
11 regarding recovery from the fund; amending s. 489.143,
12 F.S.; revising the limits for payments for claims;
13 providing limits for claims made for Division II
14 claims; removing obsolete provisions; providing an
15 effective date.
16
17 Be It Enacted by the Legislature of the State of Florida:
18
19 Section 1. Section 489.140, Florida Statutes, is amended to
20 read:
21 489.140 Florida Homeowners’ Construction Recovery Fund.
22 There is created the Florida Homeowners’ Construction Recovery
23 Fund as a separate account in the Professional Regulation Trust
24 Fund. The recovery fund is shall be funded out of the receipts
25 deposited in the Professional Regulation Trust Fund from the
26 one-half cent per square foot surcharge on building permits
27 collected and disbursed pursuant to s. 468.631.
28 Section 2. Subsection (3) of section 489.1401, Florida
29 Statutes, is amended to read:
30 489.1401 Legislative intent.—
31 (3) It is the intent of the Legislature that Division I and
32 Division II contractors set apart funds for the specific
33 objective of participating in the fund.
34 Section 3. Section 489.1402, Florida Statutes, is amended
35 to read:
36 489.1402 Homeowners’ Construction Recovery Fund;
37 definitions.—
38 (1) The following definitions apply to ss. 489.140-489.144:
39 (1)(a) “Arbitration” means alternative dispute resolution
40 entered into between a claimant and a contractor either pursuant
41 to a construction contract that contains a mandatory arbitration
42 clause or through any binding arbitration under the Florida
43 Arbitration Code.
44 (2)(b) “Board” means the Construction Industry Licensing
45 Board.
46 (3)(c) “Claimant” means a homeowner.
47 (4)(d) “Contractor” means a Division I or Division II
48 contractor performing services described in s. 489.105(3)(a)-(q)
49 489.105(3)(a)-(c).
50 (5)(e) “Court of competent jurisdiction” means a civil or
51 criminal court in the State of Florida, or a bankruptcy court.
52 (6)(f) “Homeowner” means the owner of an owner-occupied
53 residence, including a trustee based upon a trust instrument
54 granting a person a beneficial interest for life in the
55 residence.
56 (7)(g) “Licensee” means a contractor, financially
57 responsible officer, or business organization licensed under
58 this part at the time the violation was committed.
59 (8)(h) “Notice” means service as described in s. 455.275.
60 (9)(i) “Residence” means a single-family residence or an
61 individual residential condominium or cooperative unit or a
62 residential building containing not more than two residential
63 units in which the owner contracting for the improvement is
64 residing or will reside 6 months or more each calendar year upon
65 completion of the improvement.
66 (10)(j) “Recovery fund” means the Florida Homeowners’
67 Construction Recovery Fund.
68 (11)(k) “Same transaction” means a contract, or a any
69 series of contracts, between a claimant and a contractor or
70 qualified business, when such contract or contracts involve the
71 same property or contiguous properties and are entered into
72 either at one time or serially.
73 (12)(l) “Valid and current license,” for the purpose of s.
74 489.141(2)(d), means a any license issued pursuant to this part
75 to a licensee, including a license in an active, inactive,
76 delinquent, or suspended status.
77 (2) The following definitions apply to claims made prior to
78 July 1, 2007, when the contract was executed and the violation
79 occurred on or before January 1, 2005.
80 (a) “Claimant” means a natural person.
81 (b) “Licensee” means a contractor, financially responsible
82 officer, or business organization licensed under this part at
83 the time the violation was committed.
84 Section 4. Subsection (2) of section 489.141, Florida
85 Statutes, is amended to read:
86 489.141 Conditions for recovery; eligibility.—
87 (2) A claimant is not qualified to make a claim for
88 recovery from the recovery fund, if:
89 (a) The claimant is the spouse of the judgment debtor or
90 licensee or a personal representative of such spouse;
91 (b) The claimant is a licensee who acted as the contractor
92 in the transaction that which is the subject of the claim;
93 (c) The claim is based upon a construction contract in
94 which the licensee was acting with respect to the property owned
95 or controlled by the licensee;
96 (d) The claim is based upon a construction contract in
97 which the contractor did not hold a valid and current license at
98 the time of the construction contract; or
99 (e) The claimant was associated in a business relationship
100 with the licensee other than the contract at issue.;
101 (f) The claimant has suffered damages as the result of
102 making improper payments to a contractor as defined in part I of
103 chapter 713; or
104 (g) The claimant has contracted with a licensee to perform
105 a scope of work described in s. 489.105(3)(d)-(p).
106 Section 5. Section 489.1425, Florida Statutes, is amended
107 to read:
108 489.1425 Duty of contractor to notify residential property
109 owner of recovery fund.—
110 (1) Each Any agreement or contract for repair, restoration,
111 improvement, or construction to residential real property must
112 contain a written statement explaining the consumer’s rights
113 under the recovery fund, except where the value of all labor and
114 materials does not exceed $2,500. The written statement must be
115 substantially in the following form:
116
117 FLORIDA HOMEOWNERS’ CONSTRUCTION
118 RECOVERY FUND
119 (For contracts that exceed $2,500)
120
121 PAYMENT, UP TO A LIMITED AMOUNT, MAY BE AVAILABLE FROM
122 THE FLORIDA HOMEOWNERS’ CONSTRUCTION RECOVERY FUND IF
123 YOU LOSE MONEY ON A PROJECT PERFORMED UNDER CONTRACT,
124 WHERE THE LOSS RESULTS FROM SPECIFIED VIOLATIONS OF
125 FLORIDA LAW BY A LICENSED CONTRACTOR, WHERE THE VALUE
126 OF ALL LABOR AND MATERIALS EXCEEDS $2,500, AND WHERE A
127 CLAIMANT HAS MET EACH OF THE CONDITIONS PRESCRIBED IN
128 SECTION 489.141, FLORIDA STATUTES. PAYMENT CANNOT BE
129 GUARANTEED. FOR INFORMATION ABOUT THE RECOVERY FUND
130 AND FILING A CLAIM, CONTACT THE FLORIDA CONSTRUCTION
131 INDUSTRY LICENSING BOARD AT THE FOLLOWING TELEPHONE
132 NUMBER AND ADDRESS:
133
134 (contractor’s signature and date)
135 (homeowner’s signature and date)
136
137 The statement must shall be immediately followed by the board’s
138 address and telephone number as established by board rule.
139 (2)(a) Upon finding a first violation of subsection (1),
140 the board may fine the contractor up to $500, and the moneys
141 must be deposited into the recovery fund.
142 (b) Upon finding a second or subsequent violation of
143 subsection (1), the board shall fine the contractor $1,000 per
144 violation, and the moneys must be deposited into the recovery
145 fund.
146 Section 6. Subsections (2) and (5) of section 489.143,
147 Florida Statutes, are amended to read:
148 489.143 Payment from the fund.—
149 (2) A Any claimant who meets all of the conditions
150 prescribed in s. 489.141 may apply to the board to cause payment
151 to be made to a claimant from the recovery fund in an amount
152 equal to the judgment, award, or restitution order or $25,000,
153 whichever is less, or an amount equal to the unsatisfied portion
154 of such person’s judgment, award, or restitution order, but only
155 to the extent and amount of actual damages suffered by the
156 claimant. Payment from the fund for other costs related to or
157 pursuant to civil proceedings such as postjudgment interest,
158 attorney attorney’s fees, court costs, medical damages, and
159 punitive damages is prohibited. The recovery fund is not
160 obligated to pay a any judgment, award, or restitution order, or
161 any portion thereof, which is not expressly based on one of the
162 grounds for recovery set forth in s. 489.141. Beginning January
163 1, 2005, for each contract entered after July 1, 2004, payment
164 from the recovery fund is shall be subject to a $50,000 maximum
165 payment for each Division I claim. Beginning January 1, 2014,
166 for each contract entered into on or after July 1, 2013, payment
167 from the recovery fund is subject to a $25,000 maximum payment
168 for each Division II claim.
169 (5) Payments for claims against a any one licensee may
170 shall not exceed, in the aggregate, $100,000 annually, up to a
171 total aggregate cap of $500,000 for each Division I licensee and
172 up to a total aggregate cap of $250,000 for each Division II
173 licensee. For a any claim approved by the board which is in
174 excess of the annual cap per licensee, the amount in excess of
175 $100,000 up to the total aggregate cap per licensee of $250,000
176 is eligible for payment in the next and succeeding fiscal years,
177 but only after all claims for the then-current calendar year
178 have been paid. Payments may not exceed the aggregate annual or
179 per claimant limits under law. Beginning January 1, 2005, for
180 each contract entered into after July 1, 2004, payment from the
181 recovery fund is subject only to a total aggregate cap of
182 $500,000.
183 Section 7. This act shall take effect July 1, 2013.
